Why buy a funeral plan under 50?

The earlier you take out a funeral plan, the more money you can potentially save your loved ones when the time comes.

Why? Because over the past 20 years funeral costs have risen above the rate of inflation and a funeral plan is a great way to lock in today’s rate. This benefit may not be around forever, so it may be sensible to grasp this opportunity whilst you can.

Please note, not all providers will offer funeral plans to applicants under 50 years of age, so make sure you shop around. However, market leaders sell plans to anyone over 18.

Benefits of funeral plans under 50:

  • Lock in today’s rate, avoid spiralling costs
  • Spread the cost now or pay upfront, so that when it comes to retirement, you won’t have to worry about this additional expense
  • You’ll have access to the most flexible payment options
  • You can take the time to compare funeral plan prices and identify which plans offer the best value for money
  • A funeral plan allows you to arrange your own funeral, a selfless act that removes a huge burden from your loved ones
  • Paying and planning your funeral in advance ensures that loved ones aren’t able to overspend when the time comes
  • Many years of peace of mind knowing your funeral is covered and your family are protected

Freeze rising funeral costs, (+121% in 17 years)

Since records began back in 2004, funeral costs have risen from £1,865 to £4,056 (+121%), and they are forecast to continue rising over the coming decade[1].

Therefore, people in their 30s or 40s have the opportunity to avoid many years of rising funeral costs. Even in the next five years, funeral costs are forecast to increase by approximately 12%.

As touched upon earlier, taking out a funeral plan today allows you to freeze today’s price. You’ll be able to establish immediate cover so that no matter what happens, the protection is in place for loved ones for many years to come (funerals are expensive as it is!)

Plus, you’ll be saving your loved ones potentially thousands of pounds in the future – an honourable legacy to leave behind.

Fully guaranteed funeral plans for under 50

Fully guaranteed funeral plans, such as those arranged through the Co-op, will cover all your funeral services including essential third-party fees.

Not only that, but all your funeral costs including third-party fees will be fixed, no matter how much prices rise in the future. This means that your funeral could take place in 20, 30 or even 50 years, and your loved ones won’t have anything else to pay towards the services included in your plan.

What’s included in a funeral plan?

A funeral plan includes all the services required for a funeral to go ahead.

Services vary according to the price you pay and the plan you choose, however, usually, they are as follows:

  • Transportation, care and preparation of the deceased
  • Assistance with funeral arrangements
  • Support and guidance for loved ones by the funeral director
  • Use of the chapel of rest
  • A funeral service
  • Limousines for the funeral procession
  • A hearse
  • A coffin

Some funeral plans will also cover some or all third-party fees.

Third-party fees include:

  • Minister fees
  • Doctor fees
  • Cremation or burial fees

For more information see our dedicated what’s included in a funeral plan article.

Flexible payment options

Funeral plans offer a number of flexible payment options, allowing you to either pay in full or spread the cost.

Payment options vary between providers, but tend to include the following:

  • One lump sum payment
  • 12 monthly payments (fee-free)
  • Monthly instalment plan up to 25 years (charges apply)

As someone under 50, you’ll have access to the most flexible funeral plan payment options. This is because, as you will not be impacted by any upper age limit set by the plan provider, you can spread the cost up to a maximum of 25 years.

Whilst instalment charges apply, by spreading the plan over the longest term you can benefit from the lowest monthly cost. For example, a 48-year-old spreading the cost over 25 years will pay just £20.38* per month.

As mentioned, by spreading the cost of your funeral as early as possible, you won’t have to worry about this expense during retirement when funds may be more limited.

Benefits of paying by instalments

Paying by instalments for up to 25 years allows you to spread the cost of your funeral plan so it’s more affordable.

But not only that, if you choose to pay by instalments and pass away after the first 12 months, but before your plan has been paid in full, your funeral will still be covered. This means that all the services agreed upon in your plan will still be carried out, with no more for your loved ones to pay.

Many other funeral plans won’t offer this additional protection.

Plan your own funeral in advance

It may seem premature to think about planning your funeral now, but this is just another benefit of having a funeral plan in place.

A funeral plan allows you to set a budget and plan the ceremony your way without the pressure of time. You’ll be able to record your final wishes with the funeral director and settle all the arrangements. This selfless act ensures that when the time comes, a difficult burden has been removed from your loved ones.

You’ll also have peace of mind that your loved ones won’t place any further financial pressure on themselves to arrange the perfect day.

Of course, as you get older the way you may wish your funeral to be carried out may change and you may decide you need to upgrade your services.

Support for loved ones

A funeral plan can help provide support for your loved ones during a time of grief.

Funeral plans often include family support and assistance provided by the funeral director, as well as professional bereavement support and services, when the time comes. This means that with a funeral plan, your loved ones can get the emotional support they need as well as financial aid.

The life insurance solution

Life insurance provides financial protection for your loved ones in the form of a cash lump sum, which can be used to pay for your funeral and/or other commitments.

If you only want to cover future funeral expenses, then a funeral plan is probably a better option. However, if you want to cover funeral costs as well as leave an inheritance, then life insurance may make more sense for you. The payout of life insurance could also be used to ease other financial pressures your family may be faced with if you were no longer around, for example, mortgage repayments, daily living costs and/or childcare.

The best time to take out life insurance may be before you turn 50, especially if you’re in good health, as you could benefit from low-cost premiums.

Different types of life insurance

There are various types of life insurance suited to different needs.

Term-based life insurance provides cover for a set period of time, usually 20 – 40 years.

This is a popular option for many in their 30s or 40s who have young children and/or a mortgage.

Whole of life insurance provides cover for the whole of your life until you pass away (or up until a certain age).

As a payout is guaranteed, whole of life cover is a little more expensive and premiums are paid for a longer amount of time – which makes this option more suitable for someone over 40.

Life insurance can be arranged from just 20p-a-day. FCA-regulated brokers such as Reassured allow you to compare multiple policies and quotes completely free of charge.

Compare funeral plans under 50 now

As mentioned, those over 18 can purchase a prepaid funeral plan and there is usually no maximum age limit.

The younger you take out a funeral plan, the more money you can save for your loved ones in the future and the more options will be available to you to pay for the plan.

Seize the opportunity to freeze rising funeral costs today by securing your funeral plan.